Billionaire philanthropist Bill Gates said Thursday progress is being made on developing a "next-generation" ultra-thin, skin-like condom that could offer better sexual pleasure, help population control and be financed by first-world investors.

Last year, the Microsoft co-founder and one of the world's richest men offered inventors $100,000 in start-up grants to develop super-sheath condoms through the charitable Bill and Melinda Gates Foundation.

The Seattle-based foundation has given one grant of $100,000 to the University of Manchester to research a condom using a super-light conducive material known as graphene. Another $100,000 grant has gone to the University of Oregon for a proposal to create a polyurethane condom that would create a seal around the penis and be less than half the thickness of the best condoms available now.

The aim would be to encourage more couples to use condoms, preventing pregnancy and helping avert the spread of sexually transmitted illnesses such as HIV.